📰 Cryptocurrency news: Unsecured loans, reality or myth?

🔍 No platforms were found that offer collateral-free crypto loans for average users. Only businesses and trading firms can access crypto collateral-free loans, but they must go through an approval process and, in most cases, still need to provide some form of collateral.

📉 Unsecured crypto loans between companies were one of the factors that contributed to the collapse of the cryptocurrency market in 2022. Despite this, some companies continue to offer unsecured crypto loans to other companies and institutional investors.

⚡ Flash loans are the only unsecured crypto loan option, but they require advanced knowledge of smart contract programming and the operation of the Ethereum Virtual Machine (EVM). They are not a viable option for average users.

🔐 Guarantee is necessary to protect lenders in case of non-payment. Crypto loans typically require collateral greater than the value of the funds lent (overcollateralization), and in some cases, loans are offered with lower collateralization (undercollateralization), but with higher interest rates and possible credit and background checks.

🚀 In short, average users must provide collateral to obtain crypto loans. Overcollateralization is a common practice and allows you to avoid credit and background checks.